Refer to Problem 9. Assume that Scott is now taxed at 20% on dividend distribution and 20%

Question:

Refer to Problem 9. Assume that Scott is now taxed at 20% on and 20% on capital gains. Assume also that Scott originally paid $18 for these shares. If Scott only wants to receive $200 after tax, is his wealth impacted by changing this policy from a high-payout policy to a low-payout policy?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...